Business Network

Archive for January, 2012

We’ve all heard the jokes about car salesmen, especially used car salesmen. We have a picture in our minds of these shady characters we wouldn’t trust with our pencils let alone with selling us an automobile. The truth is, car salesmen have a tough job. Think you want to sell cars for a living? You might want to read what follows first.

In spite of what most people think, selling cars is not as simple as just showing somebody an automobile and getting them to sign on the bottom line. The car selling process for a salesman is actually quite involved with many steps along the way.

For starters, most of the large car dealers have a sales force. This sales force is broken up into teams and shifts. Because most dealerships are open late, one shift takes the morning and afternoon while another shift takes the afternoon and evening. A dealership may have as many as 25 salesmen working for them, not counting finance people.

When a customer comes in, the salesmen take turns approaching them for help. This way each salesman has the chance to close a sale. If it’s slow, this puts everyone on equal footing. If it’s busy, then the salesman who closes his sales the fastest will make out the best. This is because if he is done and everyone else is with a customer, then he gets the next customer that comes in regardless of who’s “turn” it is. Customers are never supposed to wait more than 30 seconds to be waited on.

The first thing the salesman does is ask the customer what they’re looking for. After getting this info, he’ll show the customer several models in the price range or class that he wants. This is probably the lengthiest part of the process as the customer may have a number of questions and even ask for a demo drive. If a demo drive is asked for the salesman has to check in with the manager to get the keys. This is to make sure that a salesman doesn’t just hop into a car and drive off with it.

If after the demo ride and all the questions are answered the customer decides he wants to get the car, the salesman’s job isn’t done. Not by a long shot. The next thing he has to do is bring the customer to the finance office to work out the financing of the vehicle. While this is going on the salesman has to go to the prep department with the car. Here he tells the prep guys what needs to be done to the car, such as if any extra equipment needs to be added. It’s the salesperson who coordinates this whole process, making sure that the prep department gets the car ready for delivery and also making sure that the finance office takes care of financing.

After the car is prepped and the finance papers are all filled out, the salesman then gets the car from the prep department and drives it to the pickup area. After the customer is all done with the paperwork, the salesman escorts the customer out to the new car, hands him the keys and gives him his business card. He tells the customer to call if he has any questions.

The salesman then has to go back inside and fill out a report on the sale and submit it to his manager.

Yes, selling a car is not just selling a car.

Delivering bad news, whether communicating up, down, or across the organization, is a difficult task. Two questions often come to mind on this dilemma:

(1) How to structure the bad news message and

(2) How to communicate the bad news.

How to Structure the Bad News Message

Answer the tough questions up front. The best way to structure a bad news message is to answer the tough questions up front. For example, if a manager must announce layoffs, he should answer his employees’ specific questions first rather than beat around the bush. The employees’ questions will likely be: How does this affect me? What is my severance package? When will this take place?

Be direct. Be honest, but be sensitive. Avoid language that attempts to evade responsibility or obscure the issue. In addition, speak in the active voice to show that you accept accountability. For example: “I have reviewed your request for a marketing assistant, but unfortunately I can’t squeeze any more out of the budget this year.”

Use clear language. Too often, unclear statements result in misunderstandings and misinterpretations. Rehearse what you need to say beforehand to prevent making any misleading or vague statements. Use straightforward sentences and language to convey the bad news.

Focus on what can be done. In the midst of a crisis, we often react negatively to the things we cannot control. Or we express what cannot be done. In a bad-news message, focus on the positive, on what can be done. For example, if talking with a customer about a delayed shipment, replace the negative language, “We cannot possibly fill your order by June 19,” with positive language, “We will be able to fill your order by June 30.”

How to Deliver the Bad News Message

Avoid e-mail. If you’ve ever opened an e-mail containing bad news, you may have sensed a lack of respect and empathy, if not blatant passive-aggression. No doubt, e-mail is a highly impersonal method of communicating bad news. Most people can better interpret and accept the bad news message when it is delivered in person.

Use one-to-one dialogue. Face-to-face communication allows for gestures and body language to help in conveying the tone and genuine expression of regret and concern. It also allows for interaction and feedback, and possibly greater acceptance of the bad news. If face-to-face interaction is not available, use the phone. Since the person you are talking to cannot read your body language or see your facial expressions, it is critical that you keep your voice energetic and your tone positive.

Listen. The recipients of the bad news will likely have questions and concerns. Show them that you understand their feelings by focusing on what they’re saying. Take notes, ask clarifying questions, and paraphrase their concerns. For example, say, “I hear you. I know this isn’t easy to accept.”

Be calm and composed. Pay close attention to your behavior and attitude when under stress. It is easy to become consumed with the reactions of others and resort to defensive behaviors. Maintain control and self-monitor your feelings, words, tone of voice, and body language.

When it comes to ensuring your business stays in business it is a good idea that you keep a watchful eye on your competitors. This is also the case when starting up a new business because you will need to know what type of competitors that you will be going up against.

When it comes to starting up a business it is essential that the first thing that you do is to conduct your market research. This function is very important as it will lay the foundation of your business and determine its potential profitability. Market research will help you to identify your target market and how profitable it is likely to be.

Another important aspect of market research is to determine your competition. If you have uncovered a profitable market there is a high chance that there are a number of competitors that are already in there and making a tidy profit. To be successful you will need to understand who they are what they do and what you need to do to muscle in on the party.

Ignoring your competition is not a good idea as they could be well established with deep pockets that eat little pretenders for supper. To understand your competition better you will need to do a competitor analysis. The aim of your competitor analysis is to get a picture of what you are going up against. You want to know how many businesses you are going to compete with. You want to know their market share and how well they are established. You will want to know the types of products they are selling and how they are selling them.

The best place to start is by determining how many competitors there are. If you discover there are several then target the top 5 for further research. The next stage is their finances. This information should be available in the public domain. A good way of finding this information is by researching financial databases. This information can be found in your library or local chamber of commerce. With this information you can have a good idea of the financial strength of your competition.

Other things you can look at are their products and feedback. The internet and shopping sites such as Amazon provide customer feedback which is a good place to start to gauge the quality of their products. The more you know about your competition the better chance you will have competing against them.